Key Michigan Avenue Corridor Project Could Take a Major Step Forward

Lansing, MI – A key development proposal situated on the Michigan Avenue corridor could be taking a major step forward next week. Following five years of detailed negotiations, the Red Cedar Renaissance development agreement is headed to Lansing City Council for a 30-day introduction, public hearing and consideration, beginning on Monday, February 26.

Redevelopment of the former Red Cedar golf course site at the intersection of US-127 and Clippert Street would strengthen the connection between the State Capitol and Michigan State University. The development agreement includes plans for a multigenerational mixed-used global village, which incorporates diversified housing options, a main street, a river view restaurant, parks, connection to the river trail, low impact environmental design, and new hotels; all elements identified through three public charrettes.

“We need a great commercial entrance to Lansing, and we have to bridge the gap between Lansing and East Lansing. Developing the Red Cedar area will accomplish both objectives,” said Lansing Mayor Andy Schor. “This proposal, which is the result of many years of negotiation, revitalizes the Michigan Avenue corridor and is a great deal for Lansing residents. This Red Cedar development will grow Lansing, and continues to prove that Lansing’s time is now.”

This $242 million project will create an estimated 388 jobs. The project will include $77.9 million in required infrastructure improvements, some of which will be publicly funded and all of which will be built with prevailing wages. The majority of financial risk related to the infrastructure improvements, $67.2 million, will be assumed by the developer using non-recourse bonds and private sources, a technique that does not require the full faith and credit support of the City’s taxpayers. The remaining infrastructure costs of $10.7 million, will be publicly funded through general obligation bonds and paid for by Brownfield Tax Increment Financing (TIF) capture from new revenue generated on the development site. The actual Brownfield Plan and consideration of approval, as well as approval of bond a sale, are items that will be brought to Council for consideration at a later date. MEDC and DEQ consideration and approval of the Brownfield Plan and additional incentives will also be required.

"We are very excited to be taking this critical step forward with the Red Cedar development,” said Frank Kass, Principal in Continental/Ferguson, the company behind the Red Cedar project and also a Founding Partner in the Columbus-based development company Continental Real Estate. “We’re going to build something amazing that the region has not seen before. We will do everything humanly possible to ensure everyone will have fair and equal access to the bidding process and we will do everything we can to hire local labor.”

In order to move forward, the development agreement requires approval from the Lansing City Council and will require future approvals from the Lansing Brownfield Redevelopment Authority, Michigan Department of Environmental Quality, and Michigan Economic Development Corporation.

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The Lansing Economic Area Partnership (LEAP) is a coalition of area leaders committed to building a prosperous and vibrant region where business can thrive. To do this, we help entrepreneurs start new businesses, help existing businesses grow, and attract new businesses to the region. For more information about LEAP, please visit www.purelansing.com